Electronic devices are commonly used for identification purposes for a host of different materials. Radio frequency identification devices (“RFID”) can be used in the tracking and tracing of luggage, clothing, shipping boxes, identification cards, pet collars, files and the like, for “touch-free” tracking of goods. RFID devices are particularly beneficial because they are not limited to line of sight. They further do not rely on physical contact with the item being located. Retailers, distributors and manufacturers can scan their inventory remotely and in bulk. There is no need to handle each item individually or even have them in sight.
An RFID system has several components. A transponder is attached to the item being tracked. It can be secured to the item in the form of a tag or a label. The transponder comprises an antenna connected to a chip. The transponder chip is programmed with information about the item and contains a unique identifier that is associated with the item to be tracked. The information is transmitted by radio frequencies that are detectable by a reader having transmitting and receiving ability. When the receiver detects a signal from a transponder, it processes information regarding that transponder. A system of multiple computers, receivers and transponders can track large numbers of transponders over a large geographical region. For example, a mass marketer can track its inventory of items by size or color, automatically reordering particular items as the inventory is depleted.
However, the current generation of RFID tags is fairly expensive. Antennas are generally etched or printed onto a plastic substrate using copper, aluminum or conductive ink. The RFID chip that carries information is attached to the antenna. The antenna that is etched or printed on the plastic substrate with the embedded chip is then laminated with plastic and converted to an inlay. The inlay is then sent to a converter to be made into a pressure sensitive label by placing it between a face stock and a release liner. Creation of the inlay, followed by conversion of the inlay to a label requires many steps, adding to the cost. The etching of copper or aluminum is done only on plastic substrates, and is process intensive. Large-scale use of RFID technology requires a less expensive transponder label or tag for use in mass market quantities.